Law changes and hundreds of millions: Labor’s bid to ‘change Adelaide’s skyline forever’
The government is promising millions for the development sector and changing laws to add numerous new floors to city skyscrapers. One critic called for more oversight over the changing skyline.
Dual announcements by the State Government backs more new development in the CBD, with plans to allow buildings to rise higher via a law change and faster with a promised $500 million pre-sale guarantee fund for developers.
The former announcement, unveiled this morning, would see state planning policy changed to allow streamlined pre-approval of increased heights of 10 to 15 floors across many areas of the CBD.
Premier Peter Malinauskas announced the changes in a release saying this “transformative policy that will change Adelaide’s skyline forever” and the government has partnered with Adelaide Airport to investigate defined development zones in the CBD to ensure the safe operation of air transport.
This would allow developers to build in those zones up to a specified height through a streamlined approval process.
For example, a development within the proposed area on West Terrace that is currently requiring approval at three storeys would now be pre-approved at 20 storeys.
Almost all of the CBD, from Angas Street to North Terrace and from West Terrace to Hutt Street, would be open for growth, the state government said.
The south-west and south-east corners of the city – mostly existing low-rise neighbourhoods – would remain unaffected by the proposed changes.
The City Building Heights Code Amendment would “give developers the confidence that their projects will proceed and will allow the building of more apartments for South Australians”, the government said in a release this morning.
It claimed that taller buildings would accelerate residential and commercial development in the CBD and “continue Adelaide’s evolution as a vibrant, high-density urban centre where more South Australians can live, work and invest.”
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CBD building heights could still be exceeded by following the regular approval process, and the Department for Housing and Urban Development would undertake a comprehensive investigation, including community and stakeholder engagement, to further inform the Code Amendment.
“For decades, a complex planning system combined with airport limits have slowed the growth of the Adelaide CBD. Governments have opted to stick with the status quo rather than pursue difficult reform. No longer,” Malinauskas said.
“Our changes, being pursued through this historic partnership with the airport will encourage growth across the CBD like we have never seen before.
“Developers will be able to invest with confidence, knowing they can build high, backed in by the State Government.”
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Planning Minister Nick Champion said the city had been “held back by conservative and complex rules around building heights”.
“More height means more apartments and more places for South Australians to call home,” he said.
“Cities must grow up to be modern, diverse and dynamic places that people want to live in and enjoy the benefits that city living has to offer.”
In the joint announcement, Property Council of Australia, SA Division, executive director Bruce Djite welcomed the plan saying the Adelaide CBD was “the greatest infill site in the country and brimming with potential”.
“This announcement sends a strong market signal that not only is Adelaide open for business, welcoming of capital and ready to grow up, but also that the state government is just as ambitious as industry about the future of our great city,” he said.
“Industry welcomes this Code Amendment and the pro-development stance of the Malinauskas government.”
But newly elected Adelaide City Councillor Patrick Maher said he was concerned about the impact on residents and businesses “who are now going to be potentially subjected to a significantly higher building next door”.
He said the council didn’t have the power to ensure developments suited the parts of the city they were being built in, and that a more detailed masterplan view of the city was required.
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Currently, council can only assess developments valued at less than $10 million – any higher is assessed by the State Government.
“At the moment, everything is approved on a one-off basis which makes it very difficult for council.
“The easiest way to change that would be to increase the State Assessment Panel trigger value of $10 million.
“Obviously we’re very limited for space so the only way to go is up. I think we can do that in a more responsible manner and in a better planned way.”
City of Adelaide Lord Mayor Dr Jane Lomax-Smith welcomed the announcement, saying: “This is further proof that Adelaide’s economy is growing and thriving.”
It comes as ground recently broke on what’s expected to be Adelaide’s first skyscraper: Keystone Tower at North Terrace.
The 183-metre building is scheduled for completion at the rear of the city’s Freemason’s Grand Lodge in 2027, and will feature a luxury hotel, office space, a function area and an observatory.
Meanwhile, there’s confusion over what actually will be Adelaide’s ‘first skyscraper’, with Festival Plaza Tower 2 also given by the Premier that title and currently under construction.
Other planning law changes were announced last week, with the state government introducing new planning laws making private bathrooms and kitchens optional in ‘co-living’ apartment buildings.
New fund for CBD developers in pre-election promise
The building height changes followed a major pre-election promise from SA Labor, which unveiled its housing policy at the State Labor Convention on Saturday.
Labor would establish a $500 million pre-sale guarantee fund that would unlock more apartment developments in the CBD in a bid to build more city housing.
Through the fund, the state government would be guarantor on up to 50 per cent of dwellings in eligible off-the-plan developments, up to a cap of $30 million per project. If apartments remain unsold, the developer could call upon the guarantee and the government would purchase them at a discount of 10 per cent of market value.
This would give developers confidence to start building, SA Labor claimed.
There were “strict eligibility criteria” and projects would have to be shovel-ready within the Adelaide CBD, meaning they must be capable of commencing construction within six months of receiving approval.
“Our policy is all about giving people choice,” Premier Malinauskas said.
“This election commitment will get more South Australians into homes and jobs and will mean more builders investing in the future of our state.”
Djite welcomed this promise too, and thanked Labor “for listening to industry, for their willingness to collaborate, and for taking another significant step in tackling the housing crisis”.
“Our recently launched Election Platform, “Ready, Set Grow” called on the next State Government to adopt our CBD and Corridors housing package and we welcome the speed with which the Premier has acted in committing to this part of the package.
“It is critical for this underwrite to also extend to corridors as identified in the Greater Adelaide Regional Plan and we look forward to continuing our work with the Malinauskas Government to ensure the parameters and jurisdictions where the $500 million applies delivers the best housing outcomes and best bang for buck.”
